New Deals - 13 July 2023

Hello SMB Deal Hunters!

I’m excited to share 5 new deals worth checking out.

Today’s issue is sponsored by Lando, the Google for business buying 🔍

1/ Professional Cleaning & Janitorial Services Provider for Commercial Clients

📍 Location: Southwest US
💰 Asking Price: N/A
💼 Cash Flow: $500,000
📊 Revenue: $5,278,000
📅 Established: 20+ years ago

💭 My 2 Cents: This company provides customized, professional cleaning and janitorial services via third-party subcontracted janitorial firms with supplemental cleaning products available for commercial clients. I love that they have approximately 200 two-year contracts in place with existing clientele, with recurring monthly billing. Because the business model is based on the use of subcontracted labor, it's also easily replicated for new locations.

Click Here To View The Listing »

2/ Indoor Electric Karting Business

📍 Location: California
💰 Asking Price: $1,800,000
💼 SDE: $600,000
📊 Revenue: $3,000,000
📅 Established: N/A

💭 My 2 Cents: I recently learned that go-karting is a multi-billion-dollar industry that’s expected to grow at a CAGR of 9.9% from 2020 to 2027 (primarily driven by electric go-karts!). Electric go-karts are both safer, less noisy, and less expensive to operate. The 20% margins definitely caught my eye, but as I did a little more digging, I found that Google trends for the term “indoor go karts near me” has steadily increased since roughly 2015 (excluding a hiccup during Covid). The business also does no advertising currently, which leaves a large opportunity for growth.

Click Here To View The Listing »

3/ QMS SaaS Software Provider – Government Contractors

📍 Location: Los Angeles, CA (Remote)
💰 Asking Price: $4,500,000
💼 Cash Flow: $685,000
📊 Revenue: $864,000
📅 Established: 1992

💭 My 2 Cents: This company serves government agencies and contractors with their cloud-based Quality Management Solutions Software, which is focused on catering to the quality assurance (QA) and compliance needs of government organizations. The software is mission-critical for its clients and end-users, which is why they have strong customer retention. I also like that they have no major client concentration and that they’ve only grown organically and through referrals, which leaves room for growth through outbound marketing, paid acquisition, and more.

Click Here To View The Listing »

4/ SE SD Medical Staffing Company

📍 Location: South Dakota (Relocatable)
💰 Asking Price: $1,023,000
💼 Cash Flow: $524,769
📊 Revenue: $4,600,000
📅 Established: 2013

💭 My 2 Cents: You probably already know that healthcare staffing is facing a nationwide shortage. This medical staffing agency servicing the Midwest specializes in travel nurses and medical specialists. They work with six local and national healthcare staffing agencies that have hundreds of openings each. The business is trading at a very attractive multiple, but you’ll likely need to add on some expenses since the owner currently manages the day-to-day operations. Bonus: The business is currently operated remotely.

Click Here To View The Listing »

5/ High Volume Land Clearing Business

📍 Location: Charlotte County, FL
💰 Asking Price: $5,900,000
💼 Cash Flow: $862,885
📊 Revenue: $6,500,000
📅 Established: N/A

💭 My 2 Cents: According to real estate software company Point2 Homes, Florida ranks second in the country in terms of permits issued for residential construction across the US, with the Southwest region leading the pack. The land-clearing business involves the removal of trees, stumps, brush, stones, and other obstacles from a given parcel of land to make it suitable for construction. Even though land clearing is a one-time service, there usually is reoccurring revenue coming from the same developers, construction companies, etc. I like that the owners have already put some management in place. What’s also interesting is the business does no advertising at this time.

Click Here To View The Listing »

See you next Tuesday!

Helen Guo

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📚 What I’m Reading This Week

Everyone always asks how I stay up-to-date, so here are a few of my favorite newsletters:

• The Sweaty Startup — “Boring business” entrepreneur Nick Huber who sold his 7-figure service business and now runs a self-storage portfolio shares actionable insights with entrepreneurs and investors.

• The Average Joe — New market trends and ideas read by 100,000+ investors (always interesting and focused articles).

• The Yellowbrick Road — An AI that reads and summarizes hundreds of articles a day to find the best trade ideas to help you make more money in the stock market.

  Houck’s Newsletter — Tactical advice to build, grow, and raise capital from Michael Houck, an a16z-backed founder.

• Dinner Table Discussions — Financial news for parents who want to keep their kids informed on the financial world around them and teach them financial literacy.

All free, all quality. Check ‘em out.

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